The Trade Receivable facility provides short-term financing to exporting manufacturers, distributors and service providers. Businesses receive financing in the form of a loan between 85% - 95% of the invoice value of export sales, which must be repaid from the assigned proceeds of payments from EXIMBANK approved buyers. The Trade Receivable facility aims to bridge the gap between the settlement of production costs and export sales receipts, allowing a business to accelerate cash flow and shorten operating cycles.

How does our Trade Receivable Financing Facility Work?

An approved Eximbank exporter submits all the required documents on the Trade Receivable Financing facility checklist related to an approved EXIM buyer. 85% -95% of the invoice value is then forwarded to the exporter and after the agreed tenor is passed the buyer repays Eximbank 100% of the invoice value. All Exim fees and related interest are extracted and the difference is refunded to the exporter.

What are the terms related to Trade Receivable Financing?

The tenor is designed to fit the relationship between the exporter and their buyers. The credit period usually ranges between 30 days and 120 days Bill of Lading (B/L) or Drawdown (DD).

What are the types of Trade Receivable Financing offered at EXIMBANK?

Trade Receivable facilities can be discounted in Trinidad and Tobago Dollars (TTD) or United States Dollars (USD).

What are the advantages of Trade Receivable Financing?

The exporter’s working capital cycle is shortened therefore allowing for increased production levels.

Exporters are able to convert a credit sale into a cash sale, thereby freeing up their capital for further exports.

RAW MATERIAL FINANCING

What is Raw Material Financing?

This is a short-term loan/direct financing that Eximbank extends to an approved company to assist in the payment of inventory, may it be raw materials, semi-finished or finished products. Once goods are received, the exporter can now prepare products for local sale or export. The Raw Material facility is offered at competitive rates and is designed for trade transactions that are short-term and self-liquidated.

How does our Raw Material Financing facility Work?

An approved EXIMBANK exporter submits a supplier’s invoice and wire transfer instructions along with a request of transfer of funds to the supplier. 100% of the invoice value is then forwarded to the supplier and after the agreed tenor is passed the exporter repays EXIMBANK 100% of the invoice inclusive of interest.

What are the terms related to Raw Material Financing?

The tenor is customised to the exporter’s needs and usually ranges between 30 days and 270 days.

NOTE:

Raw Material facilities can be discounted in Trinidad and Tobago Dollars (TTD) or United States Dollars (USD).

What are the Advantages of Raw Material Financing?

The company is offered credit terms so that it can add flexibility to its cash flow and thereby manage the business more efficiently.

It provides extra time for the goods to clear customs and be resold before you need to pay for the goods.

Suppliers are ensured payment upon request from the exporter.

DEMAND LOAN FINANCING

What is Demand Loan Financing?

A Demand Term Facility can assist manufacturers seeking to perform equipment upgrades to improve the quality of their export products
or for renovation of their premises.

What are the terms related to Demand Loan Financing?

The tenor is designed to the exporter’s needs and usually ranges between one to five years

What are the payment terms related to Demand Loan Financing?

The following are the usual payment terms offered to clients:

Moratorium on principal

Interest and principal monthly

Interest monthly principal on maturity

EXPORT CREDIT INSURANCE

What is Export Credit Insurance?

Export Credit Insurance provides risk protection to exporters against payment default by foreign buyers on goods and services exported on credit terms. With this protection, exporters are given the confidence to venture into emerging markets thereby expanding the export thrust. With the EXIMBANK credit insurance policy, exporters can obtain protection against political and commercial risks.

How does Export Credit Insurance Work?

An approved Eximbank exporter submits Declaration of Shipments and
Declarations of Overdue shipments along with a fee that is calculated per
invoice value on or before the 5th of the following month, declaring all
the shipments sent in the previous month.

What are the rates offered by EXIMBANK?

Premiums vary depending on the buyer’s credit worthiness, payment terms and the economic and political environment.
Currently the premium rate ranges between 1.8% and 3.5%.